In furtherance of its commitment to drive financial inclusion in Nigeria, Enhancing Financial Innovation & Access (EFInA) has stressed the need for the financial services industry to better understand the needs of customers to improve the uptake and usage of digital financial services in the country.
According to two new studies conducted by EFInA and InterMedia about mobile money and other digital financial services, awareness and usage of mobile money remains low in Nigeria.
The studies were featured at a workshop organised by EFInA in Lagos , which was attended by a broad range of stakeholders, including mobile money operators, deposit money banks, microfinance banks, payment service providers, mobile network operators, insurance companies, and regulators.
According to the InterMedia Financial Inclusion Insights study, as of November 2013, only 12 percent of Nigerians aged 15 and older were aware of mobile money, and less than 1 percent of them used mobile money.
Mobile money awareness and usage was slightly higher in ‘Cash-less Phase II’ states (Abia, Anambra, Kano, Ogun and Rivers states, and the FCT) where the Central Bank of Nigeria’s Cash-less Policy was introduced. EFInA research found that as at October 2013, only 4 percent of adults in the Cash-less Phase II states used mobile money.
The EFInA study also revealed that in these states, cards (debit, credit cards and pre-paid cards) were the most widely known and used electronic payment instrument among respondents; and that men were more likely than women to use electronic payments.
Findings from EFInA and InterMedia research indicated that the barriers to the uptake of mobile money in Nigeria include low customer awareness, lack of trust in mobile money, and unreliable GSM networks. However, respondents in both studies also shared positive impressions of mobile money, saying that they perceived mobile money to be fast, convenient, and safer than carrying cash.
Modupe Ladipo, chief executive officer of EFInA, said: “The financial services industry can drive uptake of mobile money by educating customers, providing reasonably priced products that meet customer needs, and creating the right incentives for both customers and mobile money agents.”
Peter Goldstein, vice president at InterMedia, said that Nigeria has a higher percentage of bank account holders, but a lower percentage of mobile money users compared with other countries studied, including Uganda and Kenya.
He stressed the need to educate potential customers about mobile money services, particularly regarding security measures that have been implemented to protect against theft and fraud.
Salah Goss, programme officer at the Bill & Melinda Gates Foundation, spoke at the workshop about the Bill & Melinda Gates Foundation’s innovative approach to managing data on digital financial services, including the deployment of an interactive map that shows financial access points in Nigeria.
She challenged financial services providers to fully realise the power of data, saying that, “Research is one of the tools most under-utilised by financial services providers.”
Established in late 2007, EFInA is a financial sector development organisation that promotes financial inclusion in Nigeria.
